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Home My WebLink About06 SECOND READING AND ADOPTION OF ORDINANCE NO. 1445 %yY Q Agenda Item 6 AGENDA REPORT City Manager tea ' Reviewed:tSrtS Finance Director N/A MEETING DATE: JULY 1, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: ERICA RABE, CITY CLERK SERVICES SUPERVISOR SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1445 SUMMARY: Ordinance No. 1445 approves levying special taxes within Community Facilities District No. 2014-1. RECOMMENDATION: Have second reading by title only and adoption of Ordinance No. 1445 (roll call vote). BACKGROUND: On June 17, 2014, the City Council had first reading by title only of the following Ordinance: ORDINANCE NO. 1445 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC), LEVYING A SPECIAL TAX WITHIN THE DISTRICT ORDINANCE NO. 1445 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, • ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC), LEVYING A SPECIAL TAX WITHIN THE DISTRICT WHEREAS, on May 6, 2014, the City Council (the "City Council") of the City of Tustin (the "City") adopted Resolution No. 14-34 declaring its intention to form the City of Tustin Community Facilities District No. 2014-1 (Tustin Legacy/Standard Pacific) (the "Community Facilities District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act"), and adopted Resolution No. 14-35 declaring its intention to incur bonded indebtedness for the Community Facilities District; and WHEREAS, on June 17, 2014, after providing all notice required by the Act, the City Council opened a public hearing required by the Act relative to the formation of the Community Facilities District, the proposed levy of a special tax within the Community Facilities District to provide certain services and finance certain public improvements and incidental expenses described in Resolution No. 14-34 and to secure the payment of any bonded indebtedness of the Community Facilities District, and the proposed issuance of up to $29,000,000 of bonded indebtedness for the Community Facilities District; and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the proposed levy of the special tax within the Community Facilities District to provide for the services and to finance the improvements and incidental expenses described in Resolution No. 14-34 and the proposed issuance of bonded indebtedness for the Community Facilities District were heard and a full and fair hearing was held; and WHEREAS, on June 17, 2014, following the close of the public hearing, the City Council adopted a resolution establishing the Community Facilities District (the "Resolution of Formation") and a resolution determining the necessity to incur bonded indebtedness for the Community Facilities District (the "Resolution to Incur Bonded Indebtedness"); and WHEREAS, because the sole property owner within the Community Facilities District is the City, both the Resolution of Formation and the Resolution to Incur Bonded Indebtedness designated the Mayor of the City as the City's representative for purposes of approving or rejecting the levying of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the Community Facilities District; and WHEREAS, on June 17, 2014, the Mayor cast a ballot on behalf of the City approving such actions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC), ORDAINS AS FOLLOWS: Section 1. The above recitals are all true and correct. Section 2. By the passage of this Ordinance, the City Council authorizes and levies a special tax within the Community Facilities District at the maximum rates and in accordance with the rate and method of apportionment set forth in Exhibit A to the Resolution of Formation, which rate and method of apportionment is incorporated by reference herein (the "Rate and Method"). Section 3. The Director of Finance of the City, or such other officer of the City designated by the Mayor, is hereby further authorized and directed each fiscal year, on or before the date required by the County of Orange to put on its tax roll, or such later date as is permitted by law, to determine the specific special tax rates and amounts to be levied for the next ensuing fiscal year for each parcel of real property within the specific special tax rate and amount to be levied on each parcel of land in the Community Facilities District pursuant to the Rate and Method. The special tax rate to be levied pursuant to the Rate and Method shall not exceed the applicable maximum rates set forth therein, but the special tax may be levied at a lower rate. Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the Resolution of Formation, or in a resolution of consideration to levy a new special tax or special taxes or to alter the Rate or Method of an existing special tax as provided in Section 53334 of the Act. Section 5. All of the collections of the special tax pursuant to the Rate and Method shall be used as provided for in the Act and the Resolution of Formation. The special tax shall be levied within the Community Facilities District only so long as needed for the purposes described in the Resolution of Formation. Section 6. The special tax levied pursuant to the Rate and Method shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time. Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of any bonded indebtedness of the Community Facilities District, together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax. Section 8. This Ordinance relating to the levy of the special tax within the Community Facilities District shall take effect 30 days following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act. Section 9. Pursuant to Section 50075.3 of the California Government Code, the Director of Finance shall file a report each fiscal year with the City Council which shall contain (i) the 2 DOCSOC/1662844v5/200350-0011 amount of funds collected and expended from the levy of Special Taxes within the Community Facilities District and (ii) the status of any project required or authorized to be funded from the levy of Special Taxes within the Community Facilities District or from bonds secured by the levy of Special Taxes within the Community Facilities District. Section. 10. The City Clerk is hereby authorized to transmit a certified copy of this Ordinance to the Orange County Assessor and Treasurer-Tax Collector, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance. INTRODUCED, ADOPTED, SIGNED AND APPROVED ON the 1st day of July, 2014. CITY COUNCIL OF THE CITY OF TUSTIN By: Elwyn A. Murray, Mayor of the City of Tustin ATTEST: Jeffrey C. Parker City Clerk of the City of Tustin STATE OF CALIFORNIA COUNTY OF ORANGE )ss. CITY OF TUSTIN I, JEFFREY C. PARKER, City Clerk of the City of Tustin, do hereby certify that the foregoing Ordinance was duly adopted by the City Council of the City of Tustin at a regular meeting held on the 1st day of July, 2014, by the following votes: AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS JEFFREY C. PARKER, CITY CLERK 3 DOC S OC/1662844v51200350-0011